Company’s Plan To Pay Every Employee At Least $70000 Per Year Backfiring

Dan Price, 31, made a lot of people very happy when he told his employees he would be cutting his only salary by from $1.2million to $90,000 in order to raise the average minimum wage of his 120 workers.

But according to an update in the New York Times, Price hasn’t fared so well with a policy, to quote economist Thomas Sowell in a different context, “involved replacing what worked with what sounded good”. “I am renting out my house right now to try to make ends meet myself”.

A Seattle CEO, who boosted the salaries of his employees to a minimum of ,000 a year said he has fallen on hard times.

Some customers apparently took their business elsewhere because they feared the new salary scale would make their costs rise, and others thought he was making a political statement.

Maisey McMaster, who joined the company five years ago and became a financial manager, said she was initially “swept up in the excitement” but soon began to have doubts.

“That really hurt me”, she said. “I was taking about not only me, but everyone”.

Grant Moran, 29, also quit after the pay changes were enacted.

“Now the people who were just clocking in and out were making the same as me”, he said.

“These individual acts can create a new kind of perception of what’s possible and what’s righteous”, Mr. Hanauer told the New York Times, giving the recent example of higher minimum wage laws, a trend which he said nobody anticipated.

However the 31-year-old, who is renting out his house to keep the salary increases going, refuses to give up.

Brian Canlis, co-owner of a family restaurant, already anxious about how to deal with Seattle’s new minimum wage, told Price the pay raise at Gravity “makes it harder for the rest of us”.

Mr Price added: “There’s no flawless way to do this and no way to handle complex workplace issues that doesn’t have any downsides or trade-offs”.

Lucas Price, who owns 30 percent of the company, accuses his brother of taking millions of dollars out of the company while denying him the benefits of his minority ownership.

Lucas filed a lawsuit against his younger sibling who admits Gravity does not have funds to pay the legal fees arising from the lawsuit.